Would I be correct that I send to – Self Assessment- HM Reveue & Customs, BX9 1AS. Before you can claim EIS tax relief you must have received an EIS3 form from the company in which you have invested. This form confirms the amount you. are eligible for by sending the ‘claim form’ section of the SEIS3 or EIS3 form to HMRC; If you are not in a position to send the claim form, the documentation.

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This publication is available at https: If you have received a form EIS3 or EIS5 for any investment you made in shares issued during the year ended 5 April or, in some cases, during the year ended 5 April see belowyou can claim relief provided you are eligible for relief for the shares see below.

Claims for relief can be made up to five years after the first 31 January following the tax year in which the investment was made. It usually takes HMRC around three months to process this application.

You will fogm claim EIS tax relief when you complete your tax return. However, as mentioned above, HMRC may request to see it to support your claim so do keep it in a safe place.

As a rule, we require the same or better level of EIS tax relief as received by the investors leading the round. If you made an investment in shares issued during the year for which you have not yet received a form EIS3 or EIS5, you cannot claim relief for that investment until you have received a form. Investors in EIS-eligible investment opportunities may be able to offset losses against their Income Tax bill for the current or previous tax year under ITASection It is important that tax claims and elections are made before the relevant deadlines.

Deal or no deal, should EIS investors be worried about Brexit?


HS341 Enterprise Investment Scheme – Income Tax relief (2015)

HMRC then sends the company blank EIS3 forms the certificate that you receivewhich the company completes and returns to you. Looking for a simple way to build a portfolio of exciting startups? Contents The circumstances in which you can claim the relief How to claim the relief Income Tax relief claims Shares that were issued to you and someone else jointly Tax relief for a different year — your choices How much relief you get for your subscriptions for shares Contact.

You are connected with a company: UK uses cookies to make the site simpler. You will need to fill in pages 3 and 4 of the EIS certificate and send these by mail to the HMRC officer dealing with your tax deductions. As mentioned above, this is not tax advice. Many investors keep track of their investments through a simple Excel sheet to make the process easier when it comes to claiming EIS relief.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

Maybe Yes this page is useful No this page is not useful Is there anything wrong with this page? The full process of obtaining an Flrm certificate for an investment can take three to four months. To help us improve GOV.

You can potentially accrue your Capital Gains Tax exemption for longer than three years as long as you continue to hold the shares. If you are employed under PAYE or for any other reason do not normally complete a tax return, the process dis3 claiming EIS relief is slightly different. Capital Gains Tax deferral relief freezes the gain, and the tax liability is deferred until the EIS shares are disposed of, although a further EIS investment can be made when that happens, to defer the tax liability again.

The success of this scheme led to the introduction of the Seed Enterprise Investment Scheme SEISwhich promotes investments in even earlier-stage and therefore riskier companies through even greater tax relief.


If you are employed under PAYE, the process is different see below.

EIS (Enterprise Investment Scheme) Tax Relief Guide For Investors

In the past, innovation was usually uncommercialised but universities are starting To view this licence, visit nationalarchives. You are recognised as being connected to the company if you are a paid company employee, partner or ei3s.

Below we give a simple step-by-step guide, which you can use as a starting point, although it is not tax advice or a personal recommendation. Read the full article in Professional Adviser bit. If the sis3 has been liquidated, a decision must be made on whether to make an election to set the loss against income, and if so, whether you want to set it against your income in the tax year of the loss or the previous tax year.

Enterprise Investment Scheme (EIS)

You can work out the amount of relief you can claim by multiplying the value of your effective loss by your marginal rate of Income Tax. You may need to take this into account if a new share issue is being added to an existing holding in the same company.

There are also rules around investing in companies that you are connected toso check these before investing in a company that you have links to.

The date the fund closed will be shown on the form EIS5 which the fund manager gives you. HMRC never guarantees that a company will certainly qualify for EIS, but an advance assurance is the closest to it forj can get.

Alternatively, you may want to offset your loss against your Capital Gains Tax bill for the current or future tax years. This publication is licensed under the terms of the Open Government Licence v3.